“A proposal within the Green Paper on Quality and Choice aims to ensure that everyone has the opportunity and greater choice of a decent home….it emphasised the need to examine the potential for mortgage backed securitisation in the UK as part of developing a more efficient delivery mechanism for mortgage products”
“Fannie Mae (the US government backed lender) has a target to lend a trillion plus dollars to marginal home-buyers”.
Both of these quotes come from a research paper published in September 2003. So when the Chancellor is reported as summoning the bankers to number 11 for a ticking off they may well remind him that we have got into this mess because politicians on both sides of the pond wanted to artificially raise the level of home-ownership. They even relaxed regulation to let the Bankers rip and boy did they do that with a vengeance! Going forward you can expect policy makers to start changing their tune. Expect the rental sector to flourish as higher mortgage costs keep a lid on significant house price rises for a very long time indeed.